Data from Dealer Auction’s Retail Margin Monitor for October 2024 revealed a strong performance from BMW, with the 3 Series climbing to third place for the first time, as well as the brand achieving third place in the top 10 makes chart.
The model achieved an impressive average retail margin of £2,700, behind the Land Rover Range Rover Evoque in second (£3,450) and Land Rover Discovery Sport in first (£3,525). The Discovery Sport also achieved the highest Average Auto Trader Retail Rating on record, at 93, reflecting high consumer demand for the vehicle.
This month’s chart reaffirms the status of the premium segment, which is increasingly challenged by mainstream models – with there being a 50/50 split in September 2024 for the first time. This month swings back towards premium, with a 60/40 split.
Dealer Auction’s Marketplace Director, Kieran TeeBoon, commented: “October’s data underscores a sustained demand for premium vehicles in the market. The performance of the BMW 3 Series is one to watch – although, interestingly, it was the slowest seller in the top 10 this month. These metrics reinforce what we’ve always said – it’s essential for dealers to have a healthy stock mix of ‘quick wins’ and opportunities for higher profit.”
Another notable model was the Vauxhall Grandland X, which made its debut in the top 10 with an average retail margin of £2,575 – enough to secure it eighth place. Just ahead was the Volkswagen Tiguan, which remained in the chart after making its entry last month.
The performance of mainstream models highlights the increasing competitiveness of these models selling in volume with healthy margins. Indeed, the used car market is in a strong position. Opportunity for the used market is set against a backdrop of UK manufacturing falling by over 20% in September, according to the SMMT.*
At brand level, Land Rover proved the top profit-making brand once more – a position it’s held since March 2023 – with an average margin of £3,650. It was followed by Mercedes-Benz (£2,700) and the aforementioned third-place BMW (£2,600). Mazda, which had dropped out of the chart last month, made a triumphant return, clocking seventh place.
Premium brands attracted the highest retail margins in the chart, with mainstream brands still confined to the lower half of the top 10. Peugeot returned to the chart for the first since March.
Richard Walker, Director of Data and Insights at Auto Trader commented: “As the Margin Monitor shows, the used car market is in a strong position and cars continue to move at pace from forecourts – that’s reflected in the confident pricing trends we’re seeing on Auto Trader. With retailers following the supply and demand data, 2024 looks set to end on a stronger note than 2023.
“The used electric market is doing especially well, with overall BEV prices up month on month. We’re hopeful that as retailer confidence continues to grow in the second-hand electric segment, we’ll see more of an electric presence in the Margin Monitor.”
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Source: *https://cardealermagazine.co.uk/publish/smmt-repeats-calls-for-incentives-on-new-evs-as-uk-manufacturing-slumps-by-over-20/309248
About Dealer Auction
Dealer Auction is the UK’s leading digital remarketing platform. We give buyers and sellers more choice, better insight and greater margins. Dealer Auction is an independent company, created through a joint venture between Cox Automotive and Auto Trader. For more information, visit www.dealerauction.co.uk.
Launched in January 2022, Dealer Auction’s Retail Margin Monitor tracks the potential retail margin that can be achieved on vehicles bought via Dealer Auction’s open network. We track models meeting two key criteria: more than 20 units sold with a retail price of less than £25,000. We then compare the sold price for each model with the Auto Trader market average to reveal the potential margin. For the brand table, we compare models with more than 50 units sold. We crunch the numbers at the start of every new month.
Notes:
1The average ‘Auto Trader Retail Rating’ uses three key metrics to determine the consumer demand for the vehicle:
- Average days to sell – Calculated for the whole of the UK and then adjusted for the variations Auto Trader have observed locally in your area.
- Live market supply – Comparing the national supply level for the vehicle over the last seven days with the usual level of supply Auto Trader have seen in the market over the last six months.
- Live buyer demand – Analysing how many people are currently searching for the vehicle on Auto Trader, comparing consumer search behaviour over the last seven days against the level of interest over the last six months.
